John Buckley Is The President of Siding Business Unit - Residential of Cornerstone Building Brands, Inc. (NYSE:CNR) And They Just Sold 36% Of Their Shares

We'd be surprised if Cornerstone Building Brands, Inc. (NYSE:CNR) shareholders haven't noticed that the President of Siding Business Unit - Residential, John Buckley, recently sold US$127k worth of stock at US$9.75 per share. That sale was 36% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Cornerstone Building Brands

Cornerstone Building Brands Insider Transactions Over The Last Year

The Executive VP Jeffrey Lee made the biggest insider purchase in the last 12 months. That single transaction was for US$487k worth of shares at a price of US$4.87 each. Even though the purchase was made at a significantly lower price than the recent price (US$9.46), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$2.1m for 510.08k shares. But they sold 68.07k shares for US$479k. In total, Cornerstone Building Brands insiders bought more than they sold over the last year. They paid about US$4.19 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Cornerstone Building Brands is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Cornerstone Building Brands

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Cornerstone Building Brands insiders own 2.4% of the company, worth about US$28m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Cornerstone Building Brands Insider Transactions Indicate?

Insiders haven't bought Cornerstone Building Brands stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cornerstone Building Brands. While conducting our analysis, we found that Cornerstone Building Brands has 2 warning signs and it would be unwise to ignore them.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

When trading Cornerstone Building Brands or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.